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Home My WebLink About44-20 Ordinance Appropriating,Adopting, and Approving the South Bend Public Transportation Corporation's 2021 Budget�._1 120ON COUNTY -CITY BUILDING p4 PHONE 574.235.9216 227 W. JEFFERSON BLVD. 2FAX 574.235.9928 SOUTH BEND, INDIANA 46601-1830 U O w a CITY OF SOUTH BEND, IN JAMES MUELLER, MAYOR DEPARTMENT OF ADMINISTRATION AND FINANCE September 2, 2020 Ms. Karen White President, South Bend Common Council 4th Floor, County -City Building 227 W. Jefferson Blvd. South Bend, IN 46601 Filed in Clerk's Office SEP U 8 2020 DAWN M. JONES CITY CLERK, SOUTH SEND, IN Re: Ordinance Appropriating, Adopting, and Approving the South Bend Public Transportation Corporation's 2021 Budget and Levying the Tax and Fixing the Rate of Taxation for the Purpose of Raising Revenue to Fund the South Bend Public Transportation Corporation, South Bend, Indiana, for the Fiscal Year ending December 31, 2021 Dear Council President White: Attached, please find a bill for consideration by the Common Council of the City of South Bend appropriating, adopting and approving monies for the South Bend Public Transportation Corporation (Transpo) for the fiscal year commencing January 1, 2021 and ending December 31, 2021. This bill is respectfully submitted for Pt reading filing with the Common Council for the council meeting on September 14, 2020, 2^d reading and public hearing at the council meeting on September 28, 2020, with 31d reading and council vote at the council meeting on October 12, 2020. I will be available to discuss this bill at the appropriate sessions of the Personnel and Finance Committee and other meetings of the South Bend Common Council. Employees of the South Bend Public Transportation Corporation will also be available at these meetings. Respectfully submitted, Daniel T. Parker City Controller BILL NO. 44-20 ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING, ADOPTING AND APPROVING THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION'S 2021 BUDGET AND LEVYING THE TAX AND FIXING THE RATE OF THE TAXATION FOR THE PURPOSE OF RAISING REVENUE TO FUND THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION, SOUTH BEND, INDIANA, FOR THE FISCAL YEAR ENDING DECEMBER 31, 2021 STATEMENT OF PURPOSE AND INTENT Pursuant to Indiana law, the South Bend Public Transportation Corporation is required to submit its proposed budget and tax levy to the Common Council of the City of South Bend for adoption. Specifically, Indiana Code § 6-1.1-17-20 requires that the South Bend Public Transportation Corporation, as a political subdivision governed by a majority of unelected officials, submit its proposed budget and property tax levy to the Common Council of the City of South Bend. Pursuant to Indiana Code § 6-1.1-17-20(e), the Common Council of the City of South Bend is required to review the South Bend Public Transportation Corporation's budget and proposed tax levy and adopt a final budget and tax levy for the South Bend Public Transportation Corporation. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, as follows: SECTION 1. The South Bend Public Transportation Corporation's budget for the year ending December 31, 2021 in the sum of $13,995,538.00, as shown on Budget Form 4-A, filed with the Common Council on August 25, 2020, is appropriated, adopted, approved and ordered set apart out of the several funds herein named and for the purposes herein specified, subject to the laws governing the same. Such sums herein appropriated shall be held to include all expenditures authorized to be made during the year, unless otherwise expressly stipulated and provided for by law. In addition, for the purpose of raising revenue to meet the necessary expenses of the South Bend Public Transportation Corporation, a total property tax levy of $4,997,006.00 and a total tax rate of 0.1215 as shown on Budget Form 4-13 are also appropriated, approved and adopted. SECTION 2. This Ordinance shall be in full force and effect from and after its passage by the Common Council of the City of South Bend and approved by the Mayor. Karen L. White, Council President South Bend Common Council Attest: Dawn M. Jones, City Clerk Office of the City Clerk Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City of South Bend, Indiana on the day of 2020, at o'clock . m. m. Dawn M. Jones, City Clerk Office of the City Clerk Approved and signed by me on the day of , 2020, at _ o'clock James Mueller, Mayor City of South Bend, Indian transpo south bend public transportation corporation 2021 FISCAL OPERATING & CAPITAL BUDGET January 1, 2021 through December 31, 2021 Prepared By South Bend Public Transportation Corporation SOUTH BEND PUBLIC TRANSPORTATION CORPORATION SOUTH BEND, INDIANA 2021 FISCAL YEAR BUDGET REQUEST TABLE OF CONTENTS BUDGET ESTIMATE FOR 2021 PROJECTIONS I ASSUMPTIONS 2021 Revenue Projection....................................................................................1 2021 Expense Projection....................................................................................2 2021 Appropriations............................................................................................3 2021 Budget Assumptions..................................................................................4 2021 Budget Policy Statements..........................................................................6 2021 Budget Summaries by Category — All Accounts.........................................7 0 ) 0 & 0 z 0 ) 0 } F- F- v k a 0 z LU _ E 0 U) § § } § LU � / § k B. 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U) Ui h W a CD J w N V) w N d ¢ E C V > 0 X y Q Ll w clE m 0 clC74 �p co Q 7 N�. 0 3 co 01 7 N a oax oa CD o U N W m W co V N C � .0 O) U 'C N C F c ca LAn C N TRANSPO Budgeted Appropriations Category O eratin i Budget Capital Budget Total 2021 Appropriations 2021 2020 2021 2020 Personnel Services Other Services and Charges Supplies Capital Outlays 8,325,576 1,473,155 951,808 540,833 8,307,891 1,260,378 1,049,336 198,710 2,704,165 1,413,550 8,325,576 1,473,155 951,808 3,244,998 Total Appropriations $11,291,372 $ 10,816,315 $ 2,704,165 $1,413,550 $ 13,995,538 transpo 2021 OPERATING BUDGET ASSUMPTIONS REVENUES: Federal, State, and Local: Transpo continues to avail ourselves of annual federal capital formula grant funds for preventative maintenance and operating assistance. The application of such funds towards the operating budget assists with offsetting loss in revenues from the State of Indiana's Public Mass Transportation Fund (PMTF) and local Property Tax revenue. This allocation decreases the funds available for routine maintenance and equipment replacement. A decrease in PMTF funding is anticipated for 2021. Ridership and Revenue: After several years of decreasing fixed route ridership, Transpo had five consecutive months of increasing ridership in late 2019 and early 2020. With the onset of COVID-19 in March 2020, ridership and passenger revenue decreased dramatically. As a result, Transpo implemented a reduced service schedule in April 2020. Transpo resumed full service in July 2020; however, fixed route ridership continues to be down approximately 50%. Transpo's Access paratransit ridership and revenue also decreased dramatically and continues to be down over 50%. It is anticipated that ridership and revenue recovery will be a long-term process. Transpo has renewed ridership programs with the University of Notre Dame, Saint Mary's College, Holy Cross College and Ivy Tech Community College. In addition, Transpo is in the process of finalizing ridership programs with South Bend Community School Corporation, School City of Mishawaka and Purdue Polytechnic High School. CARES Act: Transpo was awarded $8.5 million in funding of the CARES Act which will be used towards COVID-19 expenditures, the purchase fixed route and paratransit replacement vehicles, preventative maintenance, and operating assistance. EXPENSES: COVID-19: Significant costs were incurred in preventative measures, increased cleaning and disinfecting protocols and ensuring Personal Protective Equipment (PPE) remains available for all employees and the general public utilizing Transpo's services. Employee Waaes and Benefits: For 2021, Transpo budgeted, a slight increase in wages for employees and benefits from the 2020 budget. This is mainly due to an anticipated increase in health insurance premiums and pension contributions (to be determined during the collective bargaining process). Vehicular and Operating: Vehicular and other insurances costs have increased over the 2020 budget. This was due to an increase in vehicle liability insurance over the last year. Fuel cost per gallon decreased from the prior year amounts to $1.96 per gallon for both diesel and unleaded fuels. Transpo's CNG usage for fixed route vehicles has increased and will continue to do so as diesel vehicles, that have exceeded their useful life, are replaced with CNG. Transpo anticipates receipt of at least six new fixed route CNG vehicles in 2021. The 2021 budget does not provide the opportunity to transfer funds into the capital account to fund capital purchases. If at the end of 2021, a budget surplus would occur, the surplus would be transferred to the capital account to fund 2022 capital purchases. ➢ UPON THE ADOPTION OF THE ANNUAL BUDGET BY THE SOUTH BEND PUBLIC TRANSPORTATION BOARD OF DIRECTORS, A MONTHLY BUDGET, BASED ON HISTORICAL AND FUTURE TRENDS, WILL BE ESTABLISHED. THIS WILL HELP FACILITATE THE MONTHLY REVIEW OF FINANCIAL REPORTS BY BOARD MEMBERS AND INTERNAL MANAGEMENT. 2021 OPERATING BUDGET POLICY STATEMENTS FINANCIAL CAPACITY: Management will continue to search for investment, grant and funding opportunities to maximize revenues. 2. Management will assure cash handling practices to safeguard funds in its protection and toward timely collection of funds owed. SERVICE POLICY: 3. A review of current services levels will be conducted and recommendations will follow based upon the results of the analysis to ensure Transpo continues to serve the community to the best of its ability. 4. Access service will be provided in accordance with all applicable FTA guidelines. MANAGEMENT: 5. A professional workforce will carry out our Mission Statement. Management will assure fairness, consistency, and effective Equal Employment Opportunity and Affirmative Action policies and practices. 6. Assumes continuation of team development, employee recognition, and continuation of increased opportunities for employee training. 7. Assumes continued pursuit of programs of wellness and accident prevention in an effort to stem, to whatever extent possible, rising insurance costs. TRANSPO 2021 BUDGET SUBMISSION DEPARTMENT: ACCOUNT TITLE: All Salaries 8 Wages Summary 2019 ACTUAL $ 5,283,309 2021 BUDGET REQUEST $ 5,874,940 2020 MONTHLY AVERAGE $ 397,875 2020 APPROVED BUDGET $ 5,910,479 2020 EST EXPENSE $ 4,774,505 BUDGET CHANGE $ (35,539) Account Title 2020 2021 Operations -Fixed Route $3,363,191 $ 3,363,191 Operations -ADA 632,017 633,432 Operations -Administration 472,302 367,475 Maintenance- Vehicles 742,952 796,867 Maintenance- Administration 130,042 132,642 Maintenance -Non -Revenue 92,260 92,260 General Administration 477,715 489,074 Total $5,910,479 $ 5,874,940 7 TRANSPO 2021 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Fringe Benefits Summary 2019 ACTUAL $ 2,535,915 2011 BUDGET REQUEST $ 2,450,636 2020 MONTHLY AVERAGE $ 215,633 2020 APPROVED BUDGET $ 2,431,094 2020 EST EXPENSE $ 2,587,598 BUDGET CHANGE $ 19,542 Account Title 2020 2021 Fringe Benefits -FICA $ 452,151 $ 449,433 Fringe Benefits -Pension Plan 345,534 345,534 Fringe Benefits -Medical Insurance 1,435,997 1,441,501 Fringe Benefits- Dental Insurance 38,002 38,002 Fringe Benefits --Life Insurance 10,974 10,974 Fringe Benefits -Short Term Disability 9,150 9,250 Fringe Benefits -Unemployment Insurance 11,140 11,140 Fringe Benefits -Workman's Compensation 78,389 95,145 Fringe Benefits -Uniforms 45,757 45,157 Fringe Benefits- Tool Allowance 4,000 4,500 Total $2,431,094 $ 2,450,636 TRANSPO 2021 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Services Summary 2019 ACTUAL $ 580,039 2021 BUDGET REQUEST $ 479,039 2020 MONTHLY AVERAGE $ 55,226 2020 APPROVED BUDGET $ 511,079 2020 EST EXPENSE S 665,210 BUDGET CHANGE $ (32,040) Account Title 2020 2021 Management Service Fees $ - $ - Professional & Technical 207,939 175,939 Board Travel/Training 5,000 5,000 Temporary Help 2,500 2,500 Contract Services Operations 37,050 37,050 Contract Services Maintenance 140,000 140,000 Contract Services Administration 54,540 54,500 Security Services 64,050 64,050 Physical Damage Repairs 20,000 20,000 Recoveries of Physical Damage Repairs (20,000) (20,000) Total $ 511,079 $ 479,039 E TRANSPO 2021 BUDGET SUBMISSION DEPARTMENT: ACCOUNT TITLE: All Materials & Supplies Summary 2019 ACTUAL $ 829,358 2021 BUDGET REQUEST $ 951,808 2020 MONTHLY AVERAGE $ 58,813 2020 APPROVED BUDGET $ 994,734 2020 EST EXPENSE $ 705,760 BUDGET CHANGE $ (42,926) Account Title 2020 2021 Fuel & Lubricants Operations $ 695,720 $ 652,794 Fuel & Lubricants Maintenance 11,954 11,954 Tires & Tubes Maintenance 2,560 2,560 Materials & Supplies Operations 20,000 20,000 Materials & Supplies Maintenance 230,000 230,000 Materials & Supplies Marketing 17,000 17,000 Other Materials & Supplies Operations 4,500 4,500 Other Materials & Supplies Maintenance 2,600 2,600 Other Materials & Supplies General Administration 10,400 10,400 Total $ 994,734 $ 951,808 10 DEPARTMENT: ACCOUNT TITLE: ACCOUNT NUMBER: TRANSPO 2021 BUDGET SUBMISSION Administration & Maintenance Utilities 505-0x50-00 505-Ox2x-00 11 2019 ACTUAL $ 255,503 2021 BUDGET REQUEST $ 389,581 2020 MONTHLY AVERAGE $ 29,753 2020 APPROVED BUDGET $ 335,716 2020 EST EXPENSE $ 357,042 BUDGET CHANGE $ 53,865 Account Title 2020 2021 Electricity $ 120,000 $ 150,000 Electricity -CNG $ 73,814 $ 94,833 Water & Sewage $ 16,654 $ 17,500 Trash Collection $ 6,000 $ 6,000 Telephone $ 40,000 $ 42,000 Natural Gas $ 79,248 $ 79,248 Totals $ 335,716 $ 389,581 11 TRANSPO 2021 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Insurance Summary 2019 ACTUAL $ 279,121 2021 BUDGET REQUEST $ 488.285 2020 MONTHLY AVERAGE $ 28,854 2020 APPROVED BUDGET $ 259,436 2020 EST EXPENSE $ 346,251 BUDGET CHANGE $ 228,849 Insurance - Liability & Physical Damage Other Corporate Insurance 12 Total $ 482,000 6,285 $ 488,285 TRANSPO 2021 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Miscellaneous Summa 2019 ACTUAL $ 447,622 2021 BUDGET REQUEST $ 116,250 2020 MONTHLY AVERAGE $ 10,947 2020 APPROVED BUDGET $ 118,777 2020 EST EXPENSE $ 136,623 BUDGET CHANGE $ (2,527) Account Title 2020 2021 Dues & Subscriptions $ 19,777 $ 17,250 Travel & Meetings 25,000 25,000 Community Services 12,000 12,000 Promotion 6,000 6,000 Advertising Placements 45,500 45.500 Interest Expense on Tax Warrants/Loans 10,500 10,500 Total $ 118,777 $ 116,250 13 DEPARTMENT: All ACCOUNT TITLE ACCOUNTNUMBER: TRANSPO 2021 BUDGET SUBMISSION Capital Fund Requirements 301-0101-00 2019 ACTUAL $ 3,706,636 2020 MONTHLY AVERAGE $ 173,785 2020 EST EXPENSE $ 2,085,425 2021 BUDGET REQUEST $ 2,704,165 2020 APPROVED BUDGET $ 1,413,550 BUDGET CHANGE $ 1,290,615 $$$ FTA/State Total Grant Number Available Funded Required Grant -IN -04-0053 $ 1,169,653 $ 945,324 $ 224,329 Grant -IN -34-X0046 $ 6,817,392 $ 5,453,914 $ 1,363,478 Grant- IN -90-X756 $ 7,000,000 $ 7,000,000 $ - 2020-5307- FTA GRANT $ 2,724,226 $ 2,179,381 $ 544,845 2019 -5339 -Funding $ 2,857,564 $ 2,286,051 $ 571,513 Total $ 20,568,835 14 $17,864,670 $ 2,704,165 TRANSPO 2021 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Passenger Fares Summary ACCOUNT NUMBER: 413-0100-00 2019 ACTUAL: $ 1,337,076 2021 BUDGET REQUEST $ 1,054,641 2020 AVERAGE: $ 117,420 2020 APPROVED BUDGET $ 1,394,874 2020 ESTIMATED: $ 1,409,034 BUDGET CHANGE: $ (340,233) Account Title 2020 2021 Passenger Revenue $ 713,002 $ 601,530 Access Passenger Revenue 50,916 42,428 Access Punch Card Revenue 83,818 64,506 Passport Revenue 166,110 132,116 Student Pass Revenue 40,560 - Tripper Revenue 9,783 - Two Week Pass 109,026 64,076 One Day Pass 221,658 149,985 Student Summer Pass 15 $ 1,394,874 $ 1,054,641